82 FR 32392 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the SPY Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 133 (July 13, 2017)

Page Range		32392-32394
FR Document		2017-14663
Federal Register, Volume 82 Issue 133 (Thursday, July 13, 2017)
[Federal Register Volume 82, Number 133 (Thursday, July 13, 2017)]
[Notices]
[Pages 32392-32394]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14663]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81094; File No. SR-ISE-2017-72]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Extend the SPY 
Pilot Program

July 7, 2017.

    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 5, 2017, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``Commission'') 
the proposed rule change as described in Items I and II below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to mend its rules to extend the pilot program 
that eliminated position and exercise limits for physically-settled 
options on the SPDR S&P ETF Trust (``SPY'') (``SPY Pilot Program'').
    The text of the proposed rule change is available on the Exchange's 
Web site at www.ise.com, at the principal office of the Exchange, and 
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements

[[Page 32393]]

concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Supplementary Material .01 to ISE 
Rule 412 and Supplementary Material .01 to ISE Rule 414 to extend the 
duration of the SPY Pilot Program through July 12, 2018. This filing 
does not propose any substantive changes to the SPY Pilot Program. In 
proposing to extend the SPY Pilot Program the Exchange reaffirms its 
consideration of several factors that supported the original proposal 
of the SPY Pilot Program, including (1) the liquidity of the option and 
the underlying security, (2) the market capitalization of the 
underlying security and the related index, (3) the reporting of large 
positions and requirements surrounding margin, and (4) financial 
requirements imposed by ISE and the Commission.
    With this proposal, the Exchange submits the SPY report to the 
Commission, which report reflects, during the time period from May 2016 
through May 2017, the trading of standardized SPY options with no 
position limits consistent with option exchange provisions.\3\ The 
report was prepared in the manner specified in the Exchange's prior 
rule filing extending the SPY Pilot Program.\4\ The Exchange notes that 
it is unaware of any problems created by the SPY Pilot Program and does 
not foresee any as a result of the proposed extension. The proposed 
extension will allow the Exchange and the Commission to further 
evaluate the SPY Pilot Program and the effect it has on the market.
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    \3\ The report is attached as Exhibit 3 [sic].
    \4\ See Securities Exchange Act Release No. 78295 (July 18, 
2016), 81 FR 46728 (July 12, 2016) (SR-ISE-2016-16).
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    The Exchange represents that, should the Exchange propose to extend 
the pilot program, adopt on a permanent basis the pilot program or 
terminate the pilot program, it will submit a new pilot report at least 
thirty (30) days before the end of the extended SPY Pilot Program, 
which will cover the extended pilot period. The Pilot Report will 
detail the size and different types of strategies employed with respect 
to positions established as a result of the elimination of position 
limits in SPY. In addition, the Pilot Report will note whether any 
problems resulted due to the no limit approach and any other 
information that may be useful in evaluating the effectiveness of the 
SPY Pilot Program. The Pilot Report will compare the impact of the SPY 
Pilot Program, if any, on the volumes of SPY options and the volatility 
in the price of the underlying SPY shares, particularly at expiration. 
In preparing the report the Exchange will utilize various data elements 
such as volume and open interest. In addition the Exchange will make 
available to Commission staff data elements relating to the 
effectiveness of the SPY Pilot Program.
    Conditional on the findings in the SPY Pilot Report, the Exchange 
will file with the Commission a proposal to extend the pilot program, 
adopt the pilot program on a permanent basis or terminate the pilot. If 
the SPY Pilot Program is not extended or adopted on a permanent basis 
by the expiration of the Extended Pilot, the position limits for SPY 
options would revert to limits in effect prior to the commencement of 
the SPY Pilot Program.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \6\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system and, in general, to protect 
investors and the public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change would be 
beneficial to market participants, including market makers, 
institutional investors and retail investors, by permitting them to 
establish greater positions when pursuing their investment goals and 
needs. The Exchange also believes that economically equivalent products 
should be treated in an equivalent manner so as to avoid regulatory 
arbitrage, especially with respect to position limits. Treating SPY and 
SPX options differently by virtue of imposing different position limits 
is inconsistent with the notion of promoting just and equitable 
principles of trade and removing impediments to perfect the mechanisms 
of a free and open market. At the same time, the Exchange believes that 
the elimination of position limits for SPY options would not increase 
market volatility or facilitate the ability to manipulate the market.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. In this regard, the Exchange notes that the rule change is 
being proposed as a competitive response to similar filings that the 
Exchange expects to be filed by other options exchanges. The Exchange 
believes this proposed rule change is necessary to permit fair 
competition among the options exchanges and to establish uniform 
position limits for a multiply listed options class.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\7\
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    \7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \8\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may

[[Page 32394]]

become operative immediately upon filing. The Exchange believes that 
waiver of the operative delay is consistent with the protection of 
investors and the public interest because it will allow the SPY Pilot 
Program to continue without interruption. The Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest. Therefore, the Commission hereby 
waives the operative delay and designates the proposed rule change 
operative upon filing.\10\
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-ISE-2017-72 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2017-72. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ISE-2017-72, and should be 
submitted on or before August 3, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-14663 Filed 7-12-17; 8:45 am]
 BILLING CODE 8011-01-P
32392 Federal Register / Vol. 82, No. 133 / Thursday, July 13, 2017 / Notices

The Commission believes that market knowledge’’ exception to separate its IV. Conclusion
participants (retail and non-retail) are proprietary trading from its handling of It is therefore ordered, pursuant to
not likely to be detrimentally affected by customer orders.121 The Exchange stated Section 19(b)(2) of the Act,127 that the
other market participants’ knowledge, that this exception should be equally proposed rule change (SR–NASDAQ–
via the ELO identifier, that certain applicable to a member using the ELO 2016–161), as modified by Amendment
orders originated from retail investors functionality.122 The Exchange also No. 1, be, and hereby is, approved.
and must remain unchanged for at least noted that it believes that retail investor
one second. In particular, information For the Commission, by the Division of
limit orders that are posted on the Trading and Markets, pursuant to delegated
leakage would likely not be a concern Exchange will generally not be authority.128
for retail interest because retail interest cancelled in a short period of time such Eduardo A. Aleman,
is most often represented by one order as one second, because retail investors
at a single price.115 Also, the lack of an Assistant Secretary.
tend to have long-term investment goals [FR Doc. 2017–14666 Filed 7–12–17; 8:45 am]
ELO attribute on any particular order
and increasing the chance of receiving
would likely not allow market BILLING CODE 8011–01–P
an execution is worth the risk of their
participants to say with any assurance
that the order is of a particular order resting for one second or
participant type.116 Moreover, the longer.123 SECURITIES AND EXCHANGE
Commission does not believe that In response to the Exchange, the COMMISSION
identification of ELO orders would commenter disputed the Exchange’s [Release No. 34–81094; File No. SR–ISE–
necessarily result in market participants assertion that the ‘‘no knowledge’’ 2017–72]
choosing to route to ELO orders last and exception to the Manning rule should
therefore result in lower fill rates for address its concern, noting that it would Self-Regulatory Organizations; Nasdaq
these orders.117 In addition, the persist where a firm may choose not to ISE, LLC; Notice of Filing and
Commission notes that the use of the use the ‘‘no-knowledge’’ exception in Immediate Effectiveness of Proposed
ELO attribute is voluntary. order to provide higher fill rates or price Rule Change To Extend the SPY Pilot
Finally, one commenter suggested improvement opportunities to its Program
that the proposal could create a conflict customers.124 In reply, the Exchange July 7, 2017.
with FINRA Rule 5320, commonly noted that this scenario posited by the
known as the Manning rule.118 Pursuant to Section 19(b)(1) of the
commenter is representative of a
According to the commenter, if a broker- Securities Exchange Act of 1934 (the
voluntary strategy used by the broker-
dealer has routed a customer ELO order ‘‘Act’’),1 and Rule 19b–4 thereunder,2
dealer, and that the broker-dealer is not notice is hereby given that on July 5,
to Nasdaq but is required to pull that
compelled to use ELO.125 2017, Nasdaq ISE, LLC (‘‘ISE’’ or
ELO order within one second and fill it
to comply with its obligations under The Commission does not believe that ‘‘Exchange’’) filed with the Securities
FINRA Rule 5320, that broker-dealer the commenter’s assertion that broker- and Exchange Commission (‘‘SEC’’ or
could become out of compliance with dealers could be conflicted in their ‘‘Commission’’) the proposed rule
the ELO requirements and, as a result, ability to utilize the ELO functionality change as described in Items I and II
its retail customer limit orders could be and also comply with their obligations below, which Items have been prepared
disadvantaged vis-á-vis other broker- under FINRA Rule 5320 is a basis for by the Exchange. The Commission is
dealers’ retail customer limit orders.119 finding that the Exchange’s proposal is publishing this notice to solicit
This commenter also asserted that an inconsistent with the Act. As the comments on the proposed rule change
Exchange member may receive a sub- Exchange noted, the ‘‘no-knowledge’’ from interested persons.
second cancellation request from a exception to FINRA Rule 5320 could be I. Self-Regulatory Organization’s
customer, which could cause the applicable to an Exchange member Statement of the Terms of the Substance
member to fall under the 99% threshold using the ELO functionality.126 To the of the Proposed Rule Change
and become ineligible to submit ELO extent firms choose not to rely on the
orders on behalf of other customers.120 The Exchange proposes to mend its
‘‘no-knowledge’’ exception, any rules to extend the pilot program that
In response, the Exchange stated that limitation on such firms’ ability to
the Manning obligations of a member eliminated position and exercise limits
utilize the ELO functionality and for physically-settled options on the
using the ELO functionality would be resulting effect on their ability to
no different from the obligations on an SPDR S&P ETF Trust (‘‘SPY’’) (‘‘SPY
compete with other broker-dealers that Pilot Program’’).
OTC market maker that internalizes
handle retail order flow would stem The text of the proposed rule change
orders and relies on the ‘‘no-
from the firms’ business judgment, not is available on the Exchange’s Web site
115 See supra note 102 and accompanying text. the eligibility criteria for ELO attribute at www.ise.com, at the principal office
116 See supra notes 113–114 and accompanying usage, which apply uniformly to any of the Exchange, and at the
text. Exchange member seeking to utilize the Commission’s Public Reference Room.
117 See supra note 105 and accompanying text. ELO functionality.
118 See Citadel Letter I at 2. FINRA Rule 5320(a) II. Self-Regulatory Organization’s
states that ‘‘[e]xcept as provided herein, a member
121 See Nasdaq Response Letter I at 5. See also
Statement of the Purpose of, and
that accepts and holds an order in an equity Statutory Basis for, the Proposed Rule
security from its own customer or a customer of Supplementary Material .02 to FINRA Rule 5320.
Change
sradovich on DSK3GMQ082PROD with NOTICES

another broker-dealer without immediately 122 See Nasdaq Response Letter I at 5.
executing the order is prohibited from trading that 123 See id. at 4. See also FIA PTG Letter I at 3 In its filing with the Commission, the
security on the same side of the market for its own
account at a price that would satisfy the customer
(stating that most retail participants do not cancel Exchange included statements
orders within one second).
order, unless it immediately thereafter executes the
124 See Citadel Letter II at 3–4. 127 15
customer order up to the size and at the same or U.S.C. 78s(b)(2).
better price at which it traded for its own account.’’ 125 See Nasdaq Response Letter II at 7. 128 17CFR 200.30–3(a)(12).
119 See Citadel Letter I at 2. 126 See Nasdaq Response Letter I at 5. See also 1 15 U.S.C. 78s(b)(1).
120 See id. at 5. Supplementary Material .02 to FINRA Rule 5320. 2 17 CFR 240.19b–4.

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concerning the purpose of and basis for size and different types of strategies different position limits is inconsistent
the proposed rule change and discussed employed with respect to positions with the notion of promoting just and
any comments it received on the established as a result of the elimination equitable principles of trade and
proposed rule change. The text of these of position limits in SPY. In addition, removing impediments to perfect the
statements may be examined at the the Pilot Report will note whether any mechanisms of a free and open market.
places specified in Item IV below. The problems resulted due to the no limit At the same time, the Exchange believes
Exchange has prepared summaries, set approach and any other information that that the elimination of position limits
forth in sections A, B, and C below, of may be useful in evaluating the for SPY options would not increase
the most significant aspects of such effectiveness of the SPY Pilot Program. market volatility or facilitate the ability
statements. The Pilot Report will compare the to manipulate the market.
impact of the SPY Pilot Program, if any,
A. Self-Regulatory Organization’s B. Self-Regulatory Organization’s
on the volumes of SPY options and the
Statement of the Purpose of, and Statement on Burden on Competition
volatility in the price of the underlying
Statutory Basis for, the Proposed Rule The proposed rule change does not
SPY shares, particularly at expiration. In
Change impose any burden on competition that
preparing the report the Exchange will
1. Purpose utilize various data elements such as is not necessary or appropriate in
volume and open interest. In addition furtherance of the purposes of the Act.
The Exchange proposes to amend
the Exchange will make available to In this regard, the Exchange notes that
Supplementary Material .01 to ISE Rule
Commission staff data elements relating the rule change is being proposed as a
412 and Supplementary Material .01 to
to the effectiveness of the SPY Pilot competitive response to similar filings
ISE Rule 414 to extend the duration of
Program. that the Exchange expects to be filed by
the SPY Pilot Program through July 12,
Conditional on the findings in the other options exchanges. The Exchange
2018. This filing does not propose any
SPY Pilot Report, the Exchange will file believes this proposed rule change is
substantive changes to the SPY Pilot
with the Commission a proposal to necessary to permit fair competition
Program. In proposing to extend the
extend the pilot program, adopt the among the options exchanges and to
SPY Pilot Program the Exchange
pilot program on a permanent basis or establish uniform position limits for a
reaffirms its consideration of several
terminate the pilot. If the SPY Pilot multiply listed options class.
factors that supported the original
proposal of the SPY Pilot Program, Program is not extended or adopted on C. Self-Regulatory Organization’s
including (1) the liquidity of the option a permanent basis by the expiration of Statement on Comments on the
and the underlying security, (2) the the Extended Pilot, the position limits Proposed Rule Change Received From
market capitalization of the underlying for SPY options would revert to limits Members, Participants, or Others
security and the related index, (3) the in effect prior to the commencement of
the SPY Pilot Program. No written comments were either
reporting of large positions and solicited or received.
requirements surrounding margin, and 2. Statutory Basis
(4) financial requirements imposed by III. Date of Effectiveness of the
The Exchange believes that its Proposed Rule Change and Timing for
ISE and the Commission.
proposal is consistent with Section 6(b) Commission Action
With this proposal, the Exchange
of the Act 5 in general, and furthers the
submits the SPY report to the Because the foregoing proposed rule
Commission, which report reflects, objectives of Section 6(b)(5) of the Act 6
in particular, in that it is designed to change does not: (i) Significantly affect
during the time period from May 2016 the protection of investors or the public
through May 2017, the trading of prevent fraudulent and manipulative
acts and practices, to promote just and interest; (ii) impose any significant
standardized SPY options with no burden on competition; and (iii) become
position limits consistent with option equitable principles of trade, to foster
cooperation and coordination with operative for 30 days from the date on
exchange provisions.3 The report was which it was filed, or such shorter time
prepared in the manner specified in the persons engaged in facilitating
transactions in securities, to remove as the Commission may designate, it has
Exchange’s prior rule filing extending become effective pursuant to Section
the SPY Pilot Program.4 The Exchange impediments to and perfect the
mechanism of a free and open market 19(b)(3)(A) of the Act and Rule 19b–
notes that it is unaware of any problems 4(f)(6) thereunder.7
created by the SPY Pilot Program and and a national market system and, in
A proposed rule change filed
does not foresee any as a result of the general, to protect investors and the
pursuant to Rule 19b–4(f)(6) under the
proposed extension. The proposed public interest.
The Exchange believes that the Act 8 normally does not become
extension will allow the Exchange and operative for 30 days after the date of its
proposed rule change would be
the Commission to further evaluate the filing. However, Rule 19b–4(f)(6)(iii) 9
beneficial to market participants,
SPY Pilot Program and the effect it has permits the Commission to designate a
including market makers, institutional
on the market. shorter time if such action is consistent
The Exchange represents that, should investors and retail investors, by
with the protection of investors and the
the Exchange propose to extend the permitting them to establish greater
public interest. The Exchange has asked
pilot program, adopt on a permanent positions when pursuing their
the Commission to waive the 30-day
basis the pilot program or terminate the investment goals and needs. The
operative delay so that the proposal may
pilot program, it will submit a new pilot Exchange also believes that
report at least thirty (30) days before the economically equivalent products 7 17 CFR 240.19b–4(f)(6). As required under Rule
sradovich on DSK3GMQ082PROD with NOTICES

end of the extended SPY Pilot Program, should be treated in an equivalent 19b–4(f)(6)(iii), the Exchange provided the
which will cover the extended pilot manner so as to avoid regulatory Commission with written notice of its intent to file
arbitrage, especially with respect to the proposed rule change, along with a brief
period. The Pilot Report will detail the description and the text of the proposed rule
position limits. Treating SPY and SPX change, at least five business days prior to the date
3 The report is attached as Exhibit 3 [sic]. options differently by virtue of imposing of filing of the proposed rule change, or such
4 See Securities Exchange Act Release No. 78295 shorter time as designated by the Commission.
5 15 U.S.C. 78f(b). 8 17 CFR 240.19b–4(f)(6).
(July 18, 2016), 81 FR 46728 (July 12, 2016) (SR–
ISE–2016–16). 6 15 U.S.C. 78f(b)(5). 9 17 CFR 240.19b–4(f)(6)(iii).

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become operative immediately upon change that are filed with the I. Self-Regulatory Organization’s
filing. The Exchange believes that Commission, and all written Statement of the Terms of the Substance
waiver of the operative delay is communications relating to the of the Proposed Rule Change
consistent with the protection of proposed rule change between the The Exchange proposes to extend for
investors and the public interest Commission and any person, other than another twelve (12) month time period
because it will allow the SPY Pilot those that may be withheld from the the pilot program to eliminate position
Program to continue without public in accordance with the limits for options on the SPDR® S&P
interruption. The Commission believes provisions of 5 U.S.C. 552, will be 500® exchange-traded fund (‘‘SPY ETF’’
that waiving the 30-day operative delay available for Web site viewing and or ‘‘SPY’’),3 which list and trade under
is consistent with the protection of printing in the Commission’s Public the symbol SPY (‘‘SPY Pilot Program’’).
investors and the public interest. Reference Room, 100 F Street NE., The text of the proposed rule change
Therefore, the Commission hereby Washington, DC 20549 on official is available on the Exchange’s Web site
waives the operative delay and business days between the hours of at http://nasdaq.cchwallstreet.com, at
designates the proposed rule change 10:00 a.m. and 3:00 p.m. Copies of such the principal office of the Exchange, and
operative upon filing.10 filing also will be available for at the Commission’s Public Reference
At any time within 60 days of the inspection and copying at the principal Room.
filing of the proposed rule change, the
office of the Exchange. All comments II. Self-Regulatory Organization’s
Commission summarily may
received will be posted without change; Statement of the Purpose of, and
temporarily suspend such rule change if
the Commission does not edit personal Statutory Basis for, the Proposed Rule
it appears to the Commission that such
action is necessary or appropriate in the identifying information from Change
public interest, for the protection of submissions. You should submit only
In its filing with the Commission, the
investors, or otherwise in furtherance of information that you wish to make
Exchange included statements
the purposes of the Act. If the available publicly. All submissions
concerning the purpose of and basis for
Commission takes such action, the should refer to File Number SR–ISE– the proposed rule change and discussed
Commission shall institute proceedings 2017–72, and should be submitted on or any comments it received on the
to determine whether the proposed rule before August 3, 2017. proposed rule change. The text of these
should be approved or disapproved. For the Commission, by the Division of statements may be examined at the
IV. Solicitation of Comments Trading and Markets, pursuant to delegated places specified in Item IV below. The
authority.11 Exchange has prepared summaries, set
Interested persons are invited to Eduardo A. Aleman, forth in sections A, B, and C below, of
submit written data, views, and the most significant aspects of such
Assistant Secretary.
arguments concerning the foregoing, statements.
including whether the proposed rule [FR Doc. 2017–14663 Filed 7–12–17; 8:45 am]
change is consistent with the Act. BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
Comments may be submitted by any of Statement of the Purpose of, and
the following methods: Statutory Basis for, the Proposed Rule
SECURITIES AND EXCHANGE Change
Electronic Comments COMMISSION 1. Purpose
• Use the Commission’s Internet
comment form (http://www.sec.gov/ The purpose of the proposed rule
[Release No. 34–81090; File No. SR–
rules/sro.shtml); or NASDAQ–2017–063]
change is to amend the Supplementary
• Send an email to rule-comments@ Material at the end of Chapter III,
sec.gov. Please include File Number SR– Self-Regulatory Organizations; The Section 7 (Position Limits), to extend
ISE–2017–72 on the subject line. NASDAQ Stock Market LLC; Notice of the current pilot which expires on July
Filing and Immediate Effectiveness of 12, 2017 for an additional twelve (12)
Paper Comments month time period to July 12, 2018
Proposed Rule Change To Extend the
• Send paper comments in triplicate SPY Pilot Program (‘‘Extended Pilot’’). This filing does not
to Brent J. Fields, Secretary, Securities propose any substantive changes to the
and Exchange Commission, 100 F Street July 7, 2017. SPY Pilot Program. In proposing to
NE., Washington, DC 20549–1090. extend the SPY Pilot Program, the
Pursuant to Section 19(b)(1) of the
Exchange reaffirms its consideration of
All submissions should refer to File Securities Exchange Act of 1934 (the several factors that supported the
Number SR–ISE–2017–72. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2 original proposal of the SPY Pilot
number should be included on the notice is hereby given that on June 29, Program, including (1) the availability of
subject line if email is used. To help the 2017, The NASDAQ Stock Market LLC economically equivalent products and
Commission process and review your (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the their respective position limits; (2) the
comments more efficiently, please use Securities and Exchange Commission liquidity of the option and the
only one method. The Commission will (‘‘SEC’’ or ‘‘Commission’’) the proposed underlying security; (3) the market
post all comments on the Commission’s rule change as described in Items I and capitalization of the underlying security
Internet Web site (http://www.sec.gov/ II below, which Items have been and the related index; (4) the reporting
rules/sro.shtml). Copies of the
sradovich on DSK3GMQ082PROD with NOTICES

prepared by the Exchange. The of large positions and requirements
submission, all subsequent Commission is publishing this notice to
amendments, all written statements solicit comments on the proposed rule 3 ‘‘SPDR®,’’ ‘‘Standard & Poor’s®,’’ ‘‘S&P®,’’ ‘‘S&P
with respect to the proposed rule change from interested persons. 500®,’’ and ‘‘Standard & Poor’s 500’’ are registered
trademarks of Standard & Poor’s Financial Services
10 For purposes only of waiving the 30-day LLC. The SPY ETF represents ownership in the
11 17 CFR 200.30–3(a)(12).
operative delay, the Commission has considered the SPDR S&P 500 Trust, a unit investment trust that
1 15 U.S.C. 78s(b)(1).
proposed rule’s impact on efficiency, competition, generally corresponds to the price and yield
and capital formation. See 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. performance of the SPDR S&P 500 Index.

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Document Created: 2017-07-13 01:00:29
Document Modified: 2017-07-13 01:00:29
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		82 FR 32392